Chinese Automakers Outsell Japanese Brands in Europe for Two Consecutive Months as Localized Expansion Accelerates

According to data from the European Automobile Manufacturers' Association (ACEA), new vehicle sales in the EU, European Free Trade Association (EFTA) countries, and the UK reached 1.41 million units in June 2024, up 13% year-on-year. In that month, five Chinese automakers—BYD, Chery, SAIC Motor, Geely, and Leapmotor—collectively sold 171,630 vehicles in Europe, capturing market shares of 2.7%, 2.3%, 2.7%, 3.5%, and an undisclosed figure, respectively. Meanwhile, six Japanese brands—Toyota, Nissan, Suzuki, Mazda, Honda, and Mitsubishi—sold a combined total of 158,540 units, meaning Chinese automakers outsold their Japanese counterparts by approximately 13,000 units, widening their lead from about 8,000 units in May. In May 2024, Chinese-branded vehicles surpassed Japanese brands in sales across 31 European countries for the first time. The same five Chinese automakers sold around 138,400 vehicles, a 65% year-on-year increase, while the six Japanese automakers sold approximately 130,400 units, down 3% year-on-year. Chinese brands held a market share of roughly 12.01%, about 0.7 percentage points higher than Japanese brands. Despite the rising market share of Chinese automakers, European domestic brands remain dominant. In June, the Volkswagen Group led with a 24.6% market share, followed by Stellantis at 13.6% and Renault Group at 10.5%. Tesla’s market share in Europe rose to 3.7% from 2.8% a year earlier. Chinese auto exports overall have shown strong momentum. According to the China Association of Automobile Manufacturers (CAAM), China exported 1.037 million vehicles in June 2024, up 11.6% month-on-month and 75.1% year-on-year—the first time monthly exports exceeded one million units. Total exports in the first half of 2024 surpassed 5 million units, a 65.3% year-on-year increase. Chery, BYD, SAIC Motor, Geely, and Changan ranked as the top five exporters, with Chery alone exporting over 900,000 vehicles. While expanding into the European market, multiple Chinese automakers are advancing local production plans. On July 23, Geely and Ford announced the formation of a joint venture in Valencia, Spain, targeting production start-up in the first half of 2027. Initially, the plant will produce the Ford Kuga, followed by the Ford Bronco and a jointly developed crossover model in 2028. Geely also plans to manufacture two new energy vehicles at the facility, with the first model rolling off the line in 2028. In 2024, Chery signed an agreement with Spain’s Ebro-EV Motors to establish a joint venture at the former Nissan plant in Barcelona. Production of models such as the Omoda 5 is expected to begin this year, with annual capacity projected to reach 50,000 units by 2027 and 150,000 units by 2029. Initial products will include the EBRO-branded S700 SUV. Additionally, Chery is exploring the feasibility of having Nissan’s Sunderland plant in the UK contract-produce its passenger vehicles; if agreed, production could commence as early as fiscal year 2027. BYD announced in late 2023 plans to build its first European passenger vehicle plant in Szeged, Hungary, to be implemented in phases and expected to create thousands of jobs. The company has also indicated it may plan a second European factory, though the location has not yet been determined. Wang Xiaoqiu, Chairman of SAIC Motor, revealed that the company’s first European plant will be located in Spain, and the project is progressing steadily. Xiaomi Auto plans to enter the European market in 2027 and appointed Dieter Lorenz, former head of Central and Eastern Europe delivery operations at Tesla, in April 2024 to lead European delivery and logistics.